Matcha isn’t some trendy superfood or a cute swirl in your $7 smoothie. In Japan, it’s a cultural cornerstone, rooted in centuries of tradition, crafted with precision, and respected for far more than its Instagrammable glow. But in 2025, it’s also big business. Demand is exploding, competition is fierce, and brands are scrambling to slap matcha on anything they can sell. From sacred tea ceremonies to sugar-loaded frappes, this vibrant green powder has become both a symbol of heritage and a marketing free-for-all. If you think tossing matcha into a cookie is your ticket into Japan’s market, think again. This guide strips away the hype and dives into matcha’s true story; its history, its market power, and how brands can leverage it without losing authenticity. Ready to stop sipping and start winning? Let’s get into it.
Table of Contents
What is Matcha?
Matcha is a finely ground powder of specially grown and processed green tea leaves. Unlike traditional teas where leaves are steeped and discarded, matcha involves consuming the entire leaf, maximising its health benefits. The production process is meticulous: shade-grown tea plants develop enhanced chlorophyll levels, giving matcha its signature vibrant green colour and umami-rich flavour. Once harvested, the leaves are steamed, dried, and stone-ground into a fine powder.
The Production Process of Matcha
Shading: Tea plants are shaded for about 20-30 days before harvest to increase chlorophyll and amino acid content, resulting in a vibrant green colour and umami flavour.
Harvesting: Only the youngest, most tender leaves are handpicked to ensure high quality.
Steaming: Leaves are quickly steamed to prevent oxidation and preserve colour and nutrients.
Drying and Sorting: Leaves are air-dried and sorted, removing stems and veins.
Grinding: The dried leaves, known as tencha, are ground into a fine powder using traditional stone mills.
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Unique Properties of Matcha
Flavour Profile: Rich, creamy texture with grassy undertones and a natural sweetness balanced by mild bitterness.
Nutritional Benefits: High in catechins (antioxidants), L-theanine (promotes calm alertness), and chlorophyll (detoxifying properties).
Versatility: Used in drinks, desserts, savoury dishes, and even beauty products.
The History and Cultural Significance of Matcha
Historical Context
Matcha's history in Japan dates back to the 12th century when Zen Buddhist monk Eisai introduced powdered tea from China. Eisai authored the book Kissa Yōjōki (Drinking Tea for Health), advocating tea's medicinal properties. Matcha quickly gained popularity among monks for its ability to promote mental clarity and focus during meditation. By the 16th century, matcha became an integral part of Japanese culture, thanks to tea master Sen no Rikyū, who formalised the Japanese tea ceremony (chanoyu), emphasizing wabi-sabi—beauty in simplicity and imperfection.
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The Japanese Tea Ceremony
The tea ceremony, or chanoyu, is a ritualistic preparation and consumption of matcha that emphasises harmony (wa), respect (kei), purity (sei), and tranquility (jaku). Every element—from the tea utensils to the gestures—is imbued with cultural significance. The ceremony includes carefully selecting tea bowls (chawan), bamboo whisks (chasen), and ladles (hishaku). Participating in a tea ceremony is not just about drinking tea but engaging in mindfulness and appreciation of the present moment.
Zen Buddhism and Matcha
Zen Buddhism deeply influenced the evolution of matcha culture. Monks used matcha to stay alert during long meditation sessions due to its combination of caffeine and L-theanine, promoting calm focus. The simplicity and mindfulness inherent in the tea ceremony reflect Zen principles, promoting balance, introspection, and a connection to nature. This spiritual aspect elevated matcha from a mere beverage to a meditative practice.
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The 2024 Matcha Deficit and Global Expansion Challenges
Rising Global Demand and Supply Constraints
In 2024, global demand for matcha surged due to rising health consciousness and the growing popularity of matcha-infused products. The global wellness market, which increasingly embraces natural superfoods, drove matcha demand in industries from food and beverages to skincare. This unexpected spike led to a significant supply shortage, causing prices to soar. Japan, as the traditional producer, struggled to scale up production to meet demand without compromising quality.
Challenges for Traditional Matcha Producers
Japanese matcha producers faced major hurdles in meeting this demand surge. The cultivation process is inherently labor-intensive—shade-growing tea plants, meticulous handpicking, and slow stone-grinding cannot be easily industrialised. Additionally, Japan's aging agricultural workforce and shrinking arable land compound these production challenges. Climate change has further disrupted harvest cycles, impacting crop yields. These factors have made it difficult for traditional producers to increase output while maintaining the authenticity and quality that define premium Japanese matcha.
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The Rise of International Matcha Production
To address supply shortages, countries like China, South Korea, and Kenya ramped up matcha production. China, in particular, industrialised matcha cultivation, offering lower-cost alternatives to global markets. Kenya's climate has proven suitable for green tea cultivation, prompting increased investment in matcha production. However, these international producers often lack the artisanal heritage and strict quality control of Japanese matcha. This influx of non-Japanese matcha has introduced competitive pricing but also raised concerns about authenticity and product quality.
Types of Japanese Tea
Japan's tea culture is rich and diverse, extending beyond matcha. Understanding these varieties can provide insights into broader market opportunities.
Matcha (抹茶): Finely ground powder made from shade-grown tencha leaves. Premium brands include Ippodo Tea, Marukyu Koyamaen, and Tsujiri.
Sencha (煎茶): The most common green tea, made by infusing whole tea leaves in hot water. Brands like Ito En and Yamamotoyama offer premium sencha varieties.
Gyokuro (玉露): A shade-grown green tea with a rich, umami flavour. High-end brands like Marukyu Koyamaen and Ippodo Tea are known for their gyokuro.
Bancha (番茶): Lower-grade green tea made from mature leaves. Affordable and widely available from brands like Ocha no ITO.
Genmaicha (玄米茶): Green tea blended with roasted brown rice. Yamamotoyama and Maeda-en are popular genmaicha producers.
Hōjicha (焙じ茶): Roasted green tea with a reddish-brown color and a roasted, earthy flavour. Lupicia and Ito En lead the hōjicha market.
Kukicha (茎茶): Made from tea stems and stalks, offering a sweet and mild flavour. Morihan produces high-quality kukicha.
Tencha (碾茶): The precursor to matcha, tencha leaves are ground into matcha powder. Specialty brands like Uji Tsuen focus on premium tencha.
F&B Market Entry in Japan Using Matcha
Matcha’s cultural significance and modern appeal make it a powerful tool for brands entering Japan’s market. By integrating matcha into product lines and marketing narratives, companies can resonate with Japanese consumers and demonstrate cultural sensitivity and innovation.
Successful Case Studies
Starbucks Japan: Successfully localised its offerings by introducing matcha lattes and seasonal matcha drinks, blending Western coffee culture with Japanese tastes. Their Matcha Frappuccino and Matcha Espresso Fusion became cultural staples, especially among younger consumers.
Haagen-Dazs Japan: Launched premium matcha-flavoured ice cream, tapping into Japan's appreciation for high-quality, indulgent products. Their Uji Matcha ice cream, made with high-grade matcha from Kyoto, remains a bestseller.
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IKEA Japan: Innovatively used matcha in desserts and café items, such as matcha soft-serve and cheesecakes, drawing customers seeking unique Scandinavian-Japanese fusion experiences. Check out our blog post on IKEA in Japan for more details.
Nestlé Japan (KitKat): Developed regional matcha KitKat flavours, including Uji Matcha and Kyoto Matcha, appealing to both local consumers and tourists seeking culturally significant souvenirs.
Lindt Japan: Introduced premium matcha chocolates and truffles, leveraging matcha's premium perception in confectionery.
Strategies for Market Penetration
Authenticity: Brands should source high-quality matcha, particularly from renowned regions like Uji, Kyoto. Emphasising traditional production methods enhances brand credibility.
Cultural Sensitivity: Crafting marketing campaigns that respect and celebrate matcha’s heritage can create deeper connections with Japanese consumers. Storytelling should highlight matcha’s history, craftsmanship, and health benefits.
Product Innovation: Beyond traditional drinks, brands can develop matcha-infused products like energy bars, skincare products, alcoholic beverages, and wellness supplements to diversify their offerings.
Collaborations with Local Artisans: Partnering with Japanese tea producers or artisans can add authenticity and cultural depth to a brand’s matcha products, appealing to consumers seeking genuine experiences.
Limited Editions and Seasonal Products: Launching exclusive, seasonal matcha products can drive consumer excitement and align with Japan's strong seasonal marketing culture.
Health and Wellness Positioning: Highlighting matcha’s health benefits—such as antioxidants, metabolism support, and mental clarity—can resonate with health-conscious consumers.
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Understanding the Japanese Matcha Consumer
To effectively penetrate the Japanese market, it's crucial to understand the diverse consumer segments interested in matcha:
Traditionalists: These consumers value authenticity and ceremonial-grade matcha, appreciating the traditional preparation methods and cultural significance. They are often willing to pay a premium for high-quality matcha from renowned producers in Uji.
Health Enthusiasts: This segment focuses on the nutritional benefits of matcha, seeking it in functional foods, supplements, and health beverages. They are drawn to products that emphasise matcha's antioxidant properties, energy-boosting effects, and potential health benefits.
Trend-driven Consumers: These consumers are attracted to novelty and unique applications of matcha, such as matcha cocktails, desserts, and beauty products. They are often influenced by global trends and social media, seeking innovative and visually appealing matcha-infused creations.
Understanding these distinct consumer preferences allows brands to tailor their product development, marketing messages, and distribution strategies to reach their target audience effectively.
Distribution Channels
Navigating the Japanese distribution landscape is crucial for successful market entry. Foreign brands can explore various channels to reach their target consumers:
Online Platforms: E-commerce platforms like Rakuten, Amazon Japan, and brand-owned online stores offer direct access to consumers and allow for targeted marketing campaigns.
Specialty Stores: Collaborating with specialty tea shops, health food stores, and gourmet supermarkets can provide access to niche consumer segments and build brand credibility.
Supermarkets and Convenience Stores: Securing shelf space in major supermarket chains and convenience stores offers widespread visibility and accessibility to a broader consumer base.
Collaborations with Existing Distributors: Partnering with established distributors who have expertise in the Japanese F&B market can streamline logistics and expand market reach.
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Marketing and Promotion in Japan
Effective marketing and promotion are essential for capturing the attention of Japanese consumers. Foreign brands should consider a multi-faceted approach:
Digital Marketing: Leverage social media platforms like Instagram, Twitter, and Facebook to engage with consumers, build brand awareness, and run targeted advertising campaigns. Collaborate with Japanese influencers to reach specific demographics and build trust.
Public Relations: Develop strong public relations strategies to generate positive media coverage and build brand credibility. Press releases, media events, and partnerships with journalists can help raise awareness and establish a positive brand image.
Offline Marketing: Explore offline marketing opportunities like in-store promotions, retailer collaborations, and food events and trade shows to connect with consumers directly and offer product samples.
Market Entry: Working with specialist companies like Ulpa when entering Japan as a company or launching products is essential to make sure you hit the mark the first time. Experts in market entry in Japan, can speed up your go-to-market timeline, reduce friction when integrating new products in Japan, and be a lifesaver when it comes to highlighting potential pitfalls in your market entry strategy for Japan.
Branding and Packaging Considerations
In Japan, aesthetics and presentation play a crucial role in consumer perception. Foreign brands should pay close attention to:
Visual Appeal: Packaging should be visually appealing, incorporating elements of Japanese design aesthetics while clearly communicating the product's key features and benefits.
Quality Perception: High-quality packaging materials and printing techniques convey a sense of premium quality and attention to detail, which resonates with Japanese consumers.
Cultural Sensitivity: Avoid using imagery or language that could be perceived as culturally insensitive or inappropriate. Consult with local experts to ensure your branding aligns with Japanese cultural norms.
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Health and Wellness Integration
Matcha is poised for continued growth in health-conscious sectors, including functional foods, supplements, and nutraceuticals. The surge in plant-based and natural wellness products offers brands opportunities to introduce matcha-enriched protein powders, energy bars, and even adaptogenic beverages. Brands like Ito En and Yogi Tea are already exploring matcha-infused wellness products that emphasise their antioxidant-rich profile and natural energy-boosting properties.
Sustainable and Ethical Production
Sustainability is increasingly important. Japanese tea producers like Marukyu-Koyamaen are adopting eco-friendly practices such as organic farming, reduced pesticide use, and sustainable packaging. Brands that invest in ethical sourcing and green production will resonate with environmentally conscious consumers, both locally and globally.
Global Influences on Local Markets
Global matcha trends, including matcha cocktails, vegan matcha desserts, and matcha-based beauty products, are influencing Japanese product development.
Technological Integration in Production
Automation and precision agriculture are emerging trends helping traditional matcha producers scale production without compromising quality. Smart farming technologies are being explored to balance traditional craftsmanship with modern efficiency, addressing supply chain issues and increasing global competitiveness.
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Conclusion
The Japanese market doesn’t hand out participation trophies. If you’re serious about breaking in, slapping “matcha” on a product won’t cut it. This market demands authenticity, respect for tradition, and relentless innovation. Brands that succeed know how to balance cultural reverence with bold creativity. Those that don’t? They get left behind, buried under a pile of gimmicky green snacks.
So, what’s it going to be? Will your brand blend in or stand out?
Ready to turn cultural insight into market dominance? Ulpa.jp is your gateway to Japan’s F&B industry. From strategic market entry to crafting authentic, high-impact products, we help brands make moves that matter.
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FAQ Section
What is matcha and how is it different from regular green tea?
Matcha is a finely ground powder made from shade-grown green tea leaves, known as tencha. Unlike regular green tea where the leaves are steeped and discarded, matcha is consumed in its entirety, providing a richer flavour and higher nutrient content. This method offers more antioxidants, L-theanine, and chlorophyll, contributing to its health benefits and vibrant green colour.
Why is matcha significant in Japanese culture?
Matcha holds deep cultural significance in Japan, rooted in Zen Buddhism and the traditional tea ceremony, chanoyu. Introduced in the 12th century by monk Eisai, matcha became a symbol of mindfulness and simplicity. The tea ceremony, refined by tea master Sen no Rikyū, embodies harmony, respect, purity, and tranquillity, reflecting Japan’s cultural values.
What are the health benefits of consuming matcha?
Matcha is rich in catechins (powerful antioxidants), L-theanine (which promotes calm focus), and chlorophyll (which supports detoxification). These nutrients may boost metabolism, improve mental clarity, and provide sustained energy without the jitters associated with coffee. Its high antioxidant content also supports immune health and may reduce inflammation.
How is matcha produced?
Matcha production involves several meticulous steps: shading tea plants for 20-30 days to increase chlorophyll, handpicking the youngest leaves, steaming to prevent oxidation, air-drying and sorting, and finally stone-grinding into a fine powder. This traditional process preserves matcha's vibrant colour, umami-rich flavour, and nutritional integrity.
How can brands successfully enter Japan’s matcha market?
Brands can thrive in Japan’s matcha market by prioritising authenticity, sourcing high-quality matcha from renowned regions like Uji, Kyoto, and respecting cultural traditions. Incorporating matcha into innovative products, collaborating with local artisans, and launching seasonal or limited-edition items can appeal to Japanese consumers. Emphasising health benefits and sustainable practices also strengthens market positioning.
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